Every trading day, be ready to attack the market instead of reacting to the
market.

You will know where the key technical resistance and support levels are and what
the market is likely to do next. iStock will arm you with a target list of stocks
to buy and sell - right now - based on our exclusive, proprietary trading models.
You will also receive monthly ETF model portfolio and trend trader model portfolio

Two Week FREE Trial

Eurozone crisis burdening U.S. businesses

NEW YORK, June 8 (UPI) -- Companies from Ford Motor Co. to Staples Inc. say their businesses are being weighed down by the growing eurozone crisis, which is hurting the U.S. recovery.

"It's a really, really tough environment," Ford President and Chief Executive Officer Alan Mulally said in April after the Dearborn, Mich., automaker posted a smaller quarterly profit.

He compared the European auto business today to U.S. auto conditions in 2008 and 2009, just before the auto bailout.

Ford of Dearborn, Mich., was the only major U.S. car manufacturer to avoid government-sponsored bankruptcy.

"We're not just seeing this on the new-vehicle side," Mulally said, "but we're seeing consumers who are coming in for service -- they're not coming in as much and they're not spending as much."

Staples has sold fewer supplies in Europe this year, particularly computers, and laid off hundreds of overseas employees, said the Framingham, Mass., office-supply chain, which operates more than 2,000 stores in 26 countries.

"We expect trends in Europe to remain challenging," company President Michael Miles said last month.

"We'll remain, and continue to be, consolidating business units, centralizing functions and reducing layers in complexity with an eye toward lower costs and better execution," The Washington Post quoted him as saying.

Goodyear Tire & Rubber Co. of Akron, Ohio, said owners of consumer and commercial vehicles in Europe were buying fewer tires, so dealers were also buying fewer tires.

With Europe's volatile economy, "we will continue to plan our business cautiously and do so with discipline, focusing on intense cost control and prioritizing cash and earnings," Chairman, President and CEO Richard Kramer said in a conference call.

The 3M Co. conglomerate of Two Harbors, Minn., which operates in more than 60 countries, reported European sales fell 6 percent this spring "due to economic softness and ongoing austerity measures in many countries," Chief Financial Officer David Meline said in an April 24 conference call.

Upscale retailers including Abercrombie & Fitch Co., Neiman Marcus and Ralph Lauren Corp. reported Europeans were spending less than previously in their home countries and as U.S. tourists.

"The ongoing overhang of economic uncertainties in Europe ... [is] weighing on the customer's mind," Ralph Lauren President Roger Farah said in a May 22 conference call to discuss his company's earnings.

Jeweler Tiffany & Co. said fewer European tourists are shopping at its flagship Fifth Avenue store, the Post said.

Europeans are even skimping on chewing gum, Kraft Foods Inc. said.

"Unfortunately, this will likely continue, until the European economic environment recovers in key gum markets," said CEO Irene Rosenfeld, whose suburban Chicago confectionery, food and beverage conglomerate makes Dentyne and Trident gum, among other products.

Europe is suffering a financial crisis, fueled by dwindling investor confidence in the sovereign debts of countries including Greece, Portugal, Spain and Italy and a teetering banking sector.

"The crisis in Europe has affected the U.S. economy by acting as a drag on our exports, weighing on business and consumer confidence, and pressuring U.S. financial markets and institutions," Federal Reserve Chairman Ben Bernanke told Congress Thursday.

Fundamental data is provided by Zacks
Investment Research, and Commentary, news and Press Releases provided by
YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not
intended for trading purposes or advice. iStockAnalyst.com is not an investment
adviser and does not provide, endorse or review any information or data contained
herein.
The blog articles are opinions by respective blogger. By using this site you are
agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither
iStockAnalyst nor any of its independent providers is liable for any informational
errors, incompleteness, or delays, or for any actions taken in reliance on information
contained herein. You are solely responsible for the investment decisions made by
you and the consequences resulting therefrom. By accessing the iStockAnalyst.com
site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based
on EOD data.